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Commissioners Approve 90-day Liquor License for Prive at
Planet Hollywood Resort; Final Approval Could Take 18 Months

By Arnold M. Knightly, Las Vegas Review-JournalMcClatchy-Tribune Regional News

Oct. 7, 2009--County commissioners today approved a 90-day liquor license for the Prive nightclub at Planet Hollywood Resort while Las Vegas police continue a background investigation of the club's new owners, an investigation that could cost the owners $15,000 and 18 months to complete.

Commissioner Steve Sisolak questioned why the investigation will take so long and if it will place a financial burden on the owners.

"Is there nothing we can do to speed this up?" Sisolak asked. "In fairness to the individuals, I don't know what the cost of this is, but when it gets dragged out for this length of time, it would seem it would be enormous."

Business License Director Jacqueline Holloway estimated the cost of the investigation -- which will include sending as many as three police detectives to Miami, where the owners operate other businesses -- at $10,000 to $15,000. She said it customarily takes a year or longer to complete investigations of large applicants, especially if they are from out of state.

Barry Reinink, a detective with police special investigations unit, said officers "want to do their due diligence in looking at every aspect of those businesses."

Police need to complete background checks on two of Prive's owners and three managers before the club can be issued a permanent license.

Prive is owned by Miami-based Opium Group.

The owners of Prive, and the ultralounge The Living Room, will need to return to the county commission in early January for another license hearing.

"We've worked so hard with Metro, Planet Hollywood and Business License," Prive attorney Jay Brown said. He said the club will be closely scrutinized while it operates under a temporary license and could be closed quickly by county officials if new violations surface.

Holloway said, "The good thing about the temporary (license) is that it also allows us to take prompt and precise enforcement action if we find something wrong."

The club was shut down by the county in late July after its liquor license was revoked because the resort and club were found to be failing to "abide by the duties of a liquor licensee."

Prive reopened four weeks later under a 30-day temporary license after the new owners were in place.

The clubs were cited for three violations, which included allowing topless and lewd activity to take place on site, in 2008 by the Business License Department.

Prive has agreed to reimburse Planet Hollywood $375,000 of a $500,000 fine that was issued by casino regulators who said the resort did not "maintain sufficient control over" the nightclub.

The resort will have to pay an additional $250,000 fine if a similar complaint is filed against the hotel-casino before July 31, 2011.

Holloway said the club's new managers, as well as management from Planet Hollywood, have been "aggressive" in monitoring Prive and The Living Room since the club was closed this summer.

Five commissioners approved the 90-day license, with commission Chairman Rory Reid not voting.

Commissioner Lawrence Weekly voted against the motion without comment.

Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or 702-477-3893.

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Copyright (c) 2009, Las Vegas Review-Journal

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